That leadership position in the smartphone market is exactly what prompted Broadcom's offer in the first place. The company wants to sell the chips in everything from Internet of Things (IoT) devices and cars to phones and tablets. Buying out Qualcomm would allow it to quickly realize that goal.

Apparently those issues weren't enough to make Qualcomm sell out. The company said in a press release:

“The Board and Management are singularly focused on driving value for Qualcomm’s shareholders. After a comprehensive review, conducted in consultation with our financial and legal advisors, the Board has concluded that Broadcom’s proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty. We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer,” said Tom Horton, Presiding Director for Qualcomm Incorporated.

Qualcomm said the decision to reject Broadcom's offer was unanimous. Now we'll have to see if Broadcom returns with a bigger offer (though its initial proposal represented a 28% premium over Qualcomm's share price before Broadcom's plans were reported in the press) or simply gives up.

In an email, a Qualcomm spokesperson said the company "won't have any comment beyond this statement."